BUSINESS INFORMATION SYSTEMS
Datahas become an integral component in this era most organizations inthe market are willing to pay to access data that will aid marketanalysis on consumer behavior and preferences. It is such changes inthe market that has enabled companies like Facebook, Twitter andGoogle that encompass huge data deposits to benefit. However, thiscannot be possible if organizations cannot be able to adoptinformation systems. Information systems offer a platform for easydata entry, retrieval, manipulation and storage. For instance, anorganization like Amazon.com and Walmart will not be able to analyzetheir huge data deposits if not for the kind of systems they haveadopted (Dickson, 2014). Some of the information systems adopted inthe market include Enterprise Resource and Planning systems, SupplyChain management systems and Executive management systems, all thesesystems are used under different management levels.
INFORMATIONSYSTEMS AND GLOBALIZATION
Communicationis an integral component for any form of organization in the market.it is through communication that businesses get to attract customersand advertise their products. Information systems have enhanced theway businesses communicate to the customers with the prevalence ofsuch systems like e-mails, online conferencing and cell phone thathave become essential tools in conducting business (Garfamy, 2014).Information systems are the building blocks for the fast paced supplychain in the market. The internet allows businesses to sell, buy,advertise and solicit customer feedback to enhance their processes inthe market. Organizations that digitalize their core businessprocesses and embrace technological changes stand in a very goodposition to succeed in the market (Dickson, 2014).
Theinternet has simulated globalization by reducing overall operatingcosts and enhancing buying and selling over the internet on a globalscale. Most companies are currently rushing to the social media tosolicit customer feedback on the state of their products and servicesoffered in the market. New information systems trends include theemerging mobile digital platform, online software as a service andcloud computing. All these transitions in information systems havemade it easier for business to access all necessary support they mayrequire in one place. It has also enabled consumers in the market tosearch, compare and shop for products across long distances (Pozin,2013).
HOWINFORMATION SYSTEMS ARE APPLIED TO BUSINESSES
Manybusinesses employ their own business information model (BIM) todefine their major business functions. In order to attain this, theydivide their business functions into two major groups. The figurebelow illustrates the major divisions of business functions.
Primaryfunctions connote the core business functions of an organization,while the support functions depict those functions that shoulder thecore functions of a business. Thus, there is an interrelationshipbetween different systems adopted in an organization. For instancethe transaction processing system correlates a linkage with theexecutive support systems. TPS offers a major source of data forother systems while ESS is the primary recipient of data from otherlower systems in a business. Integration of information systems in abusiness is normally undertaken as per the kind of processes abusiness is engaged in the market (Pozin, 2013).
INFORMATIONSYSTEMS OFFER COMPETITIVE ADVANTAGE
Informationsystems play an important role in organizations in the market.Organizations strive to stay at the top in the market, in suchmarkets where recession, inflation and other economic fluctuations ischaracterized it is important for such organizations to ensureeffective and efficient methodologies of data analysis, access andstorage at all times (Pozin, 2013). Information systems play thefollowing roles.
Informationstorage and analysis
Manycompanies no longer need to manage their data as it was a decade ago,when huge costs would be incurred to employ professionals to analyzeand store huge chunks of data manually and register hard copy formatsof the data. Through information systems, organizations can be ableto employ sophisticated and well-developed database systems that willcontain all the required pieces of data about the company.Information system enables storage, analysis and update of data itis such data that the company can use to establish the kind ofconditions and developed strategies it is supposed to undertake inthe market. Data update is a key component in achieving useful datain an organization (Hull, Mendling & Tai, 2012).
Take,for instance, a case where a customer buys a product from WalmartRetail stores and realizes that the product is faulty within a periodof one week and decides to return the product. In this case if themanual system were to be used it will be extremely difficult toestablish the date, cost and quantity the customer purchased in aperiod of one week on a manual system, this is because the companyattends to numerous customers each passing day. However, the databasesystem used by Walmart will be able to pinpoint all the requiredspecifications. Hence, information systems offer an ideal approach indata storage and analysis in businesses in the market (Hull, Mendling& Tai, 2012). Effective storage mechanisms will offer a veryimportant platform for product customization hence improving customersatisfaction in the market. This in turn gives an organization acompetitive advantage in the market.
Successof a company relies on its ability to make adequate and properstrategic plans. Management team in an organization uses informationsystems to come up with strategic pans and make decisions to enableorganization growth and success in the market. Businesses useinformation systems to evaluate all the information from variedsources this analysis and comparison helps companies analyze theadequacy of their strategic plans (Petrescu, 2013). Mostorganizations rely on such systems as supply chain managementsystems, enterprise resource planning, executive decision supportsystems and management information systems to come to a conclusion ontheir best course of action. An organization that does not employsuch systems walks blindly and risks losing its market position.Thus, it is paramount to depict that information systems play animportant role in decision making process.
Informationsystems enable businesses to develop a wide spectrum of value addedsystems. For instance, a company can decide to integrate informationsystems to its manufacturing cycle to assess its daily output andensure that all the necessary requirements are met in terms ofquality and quantity. Information systems help organizations to getrid of bottlenecks that may exist and other inefficiencies duringbusiness processes (Petrescu, 2013). Currently there is no singleorganization in the market that is not concerned on its operations inthe market and its attachment to productivity levels down in themanufacturing or processing zones. Information systems correlatesthat crucial linkage that allows business processes to be closelymonitored and enhanced wherever possible to meet customer needs.Thus, an organization that does not adopt this framework risks marketloss.
COMPONENTSOF INFORMATION SYSTEMS
Themajor components of an information system include computer hardware,software, data, people and procedures. Computer hardware depicts theequipment necessary to run the required software. They can becategorized into the central processing unit and the supportequipment’s. Support equipment’s include the input and outputdevices, storage devices and communication devices that may be usedby a particular business. Software refers to the computer programsthat are supported by computer hardware, computer software aremachine readable instructions that direct the circuitry within thehardware parts of the CBIS to function in a manner that they produceuseful information from data (Hull, Mendling & Tai, 2012).
Dataare raw facts that are used by programs to produce useful informationthat aid decision making processes. Just like programs, data isstored in a machine readable form until required. Procedures describethe laid down policies and regulations that govern particularoperations of a computer system. People on the other hand can bedescribed as that component hat most influences the success orfailure of an information system. All these components have toco-exist in order to attain a more efficient and effectiveinformation system framework in a business (Petrescu, 2013).
BUSINESSMODEL IN SOLVING INFORMATION SYSTEMS RELATED PROBLEMS
Informationsystems plays a major role in solving business related problems,however, on certain occasions it is crucial for organization to solveinformation systems related problems by using their business model(Pozin, 2013). Problem solving approach connotes the following stepsas illustrated in the figure below.
Thefirst stage is the problem identification phase whereby businessestry to identify specific problems that characterize their coreprocesses. This is undertaken via an assessment of the productioncapacity, sales, and customer feedback in the market. The secondphase is the solution design segment, at this stage businesses willtry to come up with solutions that fit their specific problems. Thisis because a bank’s problem will not be the same as a restaurant’sproblem. The next stage is the need to evaluate the solution and makethe necessary choice taking into perspective the business model.Finally is the implementation stage, at this stage businesses willadopt the best solution possible that fits their vision, and coreoperations (Pozin, 2013).
IMPACTSOF INFORMATION SYSTEMS ON CAREERS
Computersare changing every aspect of our lives, people are now able to shoponline and watch movies online as compared to the previous periodswhere physical shopping was important. People no longer need to go totheir physical places of work and travel long distances to visitfriends and family. Such changes have compelled many businesses tore-model their services to take advantage of the expanded channelsoutlets such as the internet, cell phones and other communicationdevices like the iPods (Garfamy, 2014).
Accordingto a report established by Outlook for Human Resources in the ICTLabor Market, 2011-2016 depicts that the world is experiencing ashortage of skills in the ICT sector (Small Business – Chron.com,2014). The employment rate in developed nations has risen to 5.8%however when it comes to the ICT sector such countries areexperiencing shortage of knowledge and skills to fill due to thecontinued demand for ICT services across the world. Over the nextfive years, the market is expected to hire an estimated population of106,000 ICT professionals. Government reports establish that themarket is expanding while the skills needed are few due to the smallnumber of graduates with the necessary skills in ICT it is suchdemand that has seen companies employs foreigners to fill the vacantpositions within their different jurisdictions. This is an indicationthat information systems have an impound impact on business careerssince demand is shifting to other careers like ICT and IT (SmallBusiness – Chron.com, 2014).
Informationsystems have transformed businesses across the world tremendously.Those businesses that have not been able to cope up with the frequentchanges in IT and information systems have found themselves on thelosing end. People are transforming into using information systems toattain convenience, efficiency and effectiveness in all theiractivities. For instance, a person would prefer to watch a movieonline rather than walking down to the stores to purchase a moviethat would otherwise be expensive. These rapid changes in the societyhave compelled businesses to adopt information systems to fit intothe present society’s needs and standards.
Businessdriven information systems enhance communication efficiency,convenience and cost reduction. It is such approaches that depict anorganizations competitive advantage in the market (University, 2014).The company is established to stand in a good market position if itcan provide quality products, high-level customer service andwell-integrated supply chain in the market. In order to attain allthese approaches organizations must adopt business driven informationsystems that will offer the needed platform.
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